Financial Highlights
- Profit before Income Tax for the quarter – Rs. 320 Mn, an increase of Rs. 210 Mn
- Net fee and commission income grow by Rs. 55 Mn
- Net gains from derecognition of financial assets at fair value through other comprehensive ………………..income grow by Rs. 246 Mn
- Bank remains well capitalized and liquid;
o Total Capital Ratio (CAR) at 19.49%
o Liquidity Coverage Ratio (LCR), Rupee at 321.59% and All Currency at 278.20%
o Net Stable Funding Ratio (NSFR) at 136.93%
- Total Assets grow by Rs. 2 Bn
Cargills Bank’s results for the quarter ended 31 March 2025 reflected an increase of Rs. 116 Mn in profitability when compared to the corresponding quarter in 2024 posting a profit after tax of Rs. 162 Mn for Q1 2025. Net interest income of Rs. 865 Mn was an increase of Rs. 51 Mn in Q1 2025 compared with Q1 2024. Market interest rates have witnessed a gradual reduction in line with the CBSL policy directions and the Bank’s portfolio was repriced to reflect these changes. Whilst the Bank continues to focus on maintaining the NIM, a reduction from 4.86% to 4.31% was witnessed reflecting the market interest environment.
Net fee and commission income of Rs. 254 Mn for the quarter ended 31 March 2025 recorded Rs. 55 Mn growth in comparison with the corresponding period in 2024. Concerted efforts to improve trade volumes, loan related fee income, card-related fee income and improved remittance income were among the main contributory factors for this growth of 28% recorded.
Capital gains realized on derecognition of financial assets boosted other income streams by Rs. 246 Mn in the quarter under review to reach Rs. 338 Mn.Net gains from financial assets at fair value through profit or loss decreased by Rs. 38 Mn to reach Rs. 46 Mn in Q1 2025. Net other operating income grew by 63% to reach Rs. 27 Mn largely due to improvement in foreign exchange gains recognized during the quarter under review.
Total operating expenses increased by 19% from Rs. 770 Mn Q1 2024 to Rs. 915 Mn in Q1 2025. Personnel expenses increased by 16% due to increase in the cadre coupled with revision in salary to reflect market conditions. Other operating expenses grew by 25% due to increase in the branch network, marketing and other administrative expenses and additional one time expenses incurred on investigations and recommendations subsequent to the Cyber Security Incident. The Bank’s Cost-to-Income Ratio of 59.72% reflected a marginal increase from 58.23% in 2024.
Impairment charges totaling Rs. 126 Mn reflected a decrease of 44% from Rs. 226 Mn in the Q1 2025 subsequent to a careful scrutiny of the status of borrowers and considering the improved macro-economic environment and results of recovery actions. The Bank’s Stage 3 Loans (net of Stage 3 Impairment) to Total Loans Ratio stood at 8.18% while Stage 3 Provision Cover was 46.46% as at 31 March 2025.
The Bank maintains Capital Adequacy and Liquid Assets Ratios well within the minimum requirements prescribed by the Central Bank. The Total Capital Ratio was at 19.49% while all liquidity related ratios were well above the regulatory minimum requirements.
Total assets of the Bank as at 31 March 2025 at Rs. 82.3 Bn reflected an increase of 3% or Rs. 2 Bn during the quarter. The loan book posted a moderate growth of 6%, from Rs. 46.1 Bn to Rs. 48.8 Bn, given conditions prevailing. Financial Assets measured at fair value through other comprehensive income decreased by 2% to reach Rs. 21.8 Bn. Net loss of Rs. 307 Mn was reflected in Other Comprehensive Income. Customer Deposits decreased by 5% to Rs. 56.7 Bn at the reporting date from Rs. 59.4 Bn at the end 2024.
